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Agricultural Policies in Argentina

image of Agricultural Policies in Argentina

The Food and Agriculture Reviews provide a comprehensive assessment of agricultural policies and calculate a set of policy indicators developed by the OECD. These indicators are regularly used in the analysis of the agriculture and food sector in OECD countries and several emerging economies. This review analyses both the indicators available for Argentina and the main agricultural policy areas, such as trade, innovation, sustainability, risk management and value chains. It also provides a series of policy recommendations.

Argentina’s agricultural sector has undergone a considerable innovation process over the last two decades. This transformation was mostly led by a dynamic and pro-active private sector often subject to policies providing negative support via export restrictions and taxes. The rapid adoption of technologies, such as improved varieties and no-till farming, and organisational innovations have contributed to increasing the Total Factor Productivity of crops. Government focus on providing such general services as research, extension, and animal and plant health has facilitated innovation as has the proactive management of risks by farmers. Nevertheless, environmental pressures are increasing with deforestation and the use of pesticides.

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Sustainability of Argentina's agricultural transformation

Argentina’s agriculture sector has transformed at an accelerated pace in recent years with new technologies and the expansion of the agricultural frontier. This has opened new opportunities for the sector but has increased environmental pressures. The trends in the agri-environmental indicators reveal that most of these pressures are still lower than in OECD countries. However, deforestation rates in Argentina are high and the use of pesticides per area of cropland has risen at rates well above the OECD average. In the context of reducing export taxes on the main exporting commodities, it is important to strengthen the Native Forest Law and good environmental practices on the use of pesticides and rotation, potentially incorporating targeted instruments to enhance the responsibility of producers in reducing negative agri‑environmental externalities.

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